REGION: Riverside, Hemet YMCAs shuttered amid bankruptcy

The YMCAs in Riverside and Hemet, shuttered since Friday, Jan. 11, have been permanently closed, officials said.

The YMCA of Riverside City and County announced last month it was filing for bankruptcy reorganization as it grappled with financial problems stemming from the opening of a Temecula facility that ended up closing months ago. But its situation worsened Monday, Jan. 14, when a deal for the Orange County YMCA to take over and run its facilities fell through, according to officials and court documents.

Also, the Y is changing its bankruptcy filing from a reorganization known as Chapter 11 to Chapter 7, which could lead to the sale of its property and assets, court filings show.

The agreement for the Orange County facility apparently fizzled Monday evening, said Robin Treen, of the Kiwanis Club of Riverside. The club has met at the Y for more than 50 years and was notified Monday night of the closure, he said Tuesday, Jan. 15.

The Y told a federal bankruptcy court that its doors have been closed since Friday, that it cannot get a loan or other aid to stay open, and agreed to a Chapter 7 bankruptcy that could see the sale of its property to satisfy creditors.

A court filing Tuesday showed assets of less than $5.3 million and liabilities of $4.6 million.

Riverside YMCA’s board chairman, John Ray, said in a news release that the Y lacks the financial resources to keep operating after “serving the children, families and communities of Riverside County for nearly 130 years.”

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He said the economic recession hit the YMCA hard, along with declines in membership and donations.

Both the Riverside and Hemet YMCAs remained shuttered Tuesday, Jan. 15, the same day that Riverside County Superior Court announced an immediate shutdown of child care services at three of its courts in Riverside. The YMCA provided the child care, and the court said the suspension of service would be temporary.

A declaration from Chief Executive Officer Jaclyn Fielder filed Tuesday said the Riverside YMCA didn’t open on Friday and has been closed since. She declined to comment, saying a news release would be issued.

A sign on a gate of the Riverside facility said it closed Friday for maintenance and gave an email address for members to ask about Saturday and Sunday hours. Both gates remained locked Tuesday, and a FedEx delivery attempt tag had been stuck on top of the sign on one gate. The other gate had an empty plastic sleeve where the paper sign had apparently blown away.

The Hemet YMCA had a sign Monday saying it was closed for repairs.

Hemet Assistant City Manager Mark Orme said the city received a call Tuesday morning and was evaluating options for the building, which the city owns. The YMCA took over operations of the city’s Simpson Community Center in 2010.

“We’re saddened by this news,” Orme said.

Treen said he came to the Riverside Y to get items the Kiwanis Club owns but was stopped by a locked gate that blocked the property and parking lot. The Kiwanis club will move to a Texas Street property the club owns, Treen said.

CHANGE IN PLANS

The closure comes less than three weeks after the Riverside Y said it would stay open as it went through Chapter 11 bankruptcy reorganization with help from the Orange County Y. That Dec. 28 announcement followed months of financial troubles for the Riverside-based organization.

The Orange County YMCA issued a news release late Tuesday saying the court did not approve its offer of management assistance so it could not assist the Riverside Y’s reorganization.

Members and parents of Riverside Y employees said many employees hadn’t been paid for months.

Since June 2011, employees have had trouble cashing their payroll checks, said Angie Tapia, the mother of an employee.

She said the child care employees received a mass text message at 9:30 p.m. Monday about the closing, but many parents were given little or no notice that they could not rely on the YMCA for child care the next day.

Another employee’s mother, Patricia Morales, showed up at the locked gate Tuesday afternoon to see if her daughter, whom she said wasn’t told anything, was still supposed to work Tuesday as scheduled.

Y members also pulled up to the locked gates at the Riverside facility on Jefferson Street and had to turn around in the driveway Tuesday.

The Riverside resident said the air conditioner hasn’t worked for months. Restroom facilities have also been out of order, ceiling tiles are missing and facilities haven’t been kept clean, Howard said.

Howard said she saw people signing up for classes and joining last week.

Member Robert Krantz, who calls himself a Riverside activist, said he paid his dues last week.

“I’ve been here 12 years trying to save this place,” he said. Krantz blamed former management for expansions and property purchases that piled up debt.

In a court document, Fielder said she didn’t oppose changing to a Chapter 7 bankruptcy case.

Top creditors include Provident Bank, which is claiming a $1.5 million loan for the YMCA’s failed Temecula facility and another $739,067.68 from a line of credit. The Orange County YMCA claims it is owed $210,000 for a deed of trust. Both claims are listed as disputed.

Court filings list unpaid wage claims back to June.

In the past year, financial problems led the Riverside YMCA to cut after-school programs in the Alvord Unified, Riverside Unified and Perris Elementary school districts, and to turn over operations of a Jurupa Valley facility to the Corona-Norco Family YMCA.

Fielder said in December that the YMCA’s financial problems stemmed from a decision to build the now-shuttered Southwest Family YMCA in Temecula, which opened in 2009 before she became CEO.

The organization already was in financial straits because it had no reserves and officials were borrowing money for operating cash, she said. The YMCA spent $4.8 million on the Temecula facility, but officials have said it was never big enough and failed to attract sufficient donations or members.

The organization used its Riverside facility as collateral for the Temecula project, leaving nothing else to borrow against to shore up its finances, Fielder had said.

In late November, the Temecula City Council voted to declare the sports club in default on its lease.

Also contributing to this report: Staff writer Craig Shultz, cshultz@pe.com